3 Iranian MVNOs Venture Into SIM Card Business

EghtesadOnline: Deputy Director of Communication Regulatory Authority (CRA), Sadeq Abbasi Shahkouh, has announced that three Mobile Virtual Network Operators (MVNO) are to offer SIM cards in the next few days.

News ID: ۷۴۳۱۰۰

31 July 2017

An MVNO is a wireless communications services provider that does not own the mobile network infrastructure over which it provides services to customers, but pays a fee to the network operators.

Shahkouh said the three unnamed businesses will begin sales of SIM cards in the next week as a part of a series of events to promote their new services, ICTNA reported.

“Two other MVNO permits have been issued by CRA. Moreover, 20 other firms have signed agreements with the ombudsman to offer their services. However, they are yet to receive permits.”

According to Financial Tribune, the CRA issued a call for registration last winter, following which the applications from 51 firms were processed and they were to submit documents by a August 21, 2017 deadline.

So far 52 applicants have registered for the MVNO license, including 32 foreign operators, 13 investment companies, and seven banks.

In the next 10 years, it has been predicted that MVNOs will have 13 million subscribers and account for 15% of the domestic cell phone market.

Three of the companies which have unveiled their MVNO SIM cards are Shatel — one of the largest landline Internet service providers — SamanTel of Iran’s privately- owned Saman Bank as well as NeginTel which released SIM cards to Tractor Sazi football club supporters in the north of the country.

Value-Added Services

In a recent talk with the press Telecoms Minister Mahmoud Vaezi said: “MVNOs presence will complement the work of local mobile operators.”

According to the minister “the MVNOs’ main purpose will be to offer value added services.”

VAS is a popular telecommunications industry term for non-core services, or, in short, all services beyond standard voice calls and text messaging services.

In telecom jargon, VAS adds value to the standard service and lures subscribers to use their phone more and drive profits.

Some of the services offered under the category are news and entertainment, location-based services and advertisement.

Vaezi also said that each MVNO will cater to the needs of a specific market.

“For instance [one firm] Amin MVNO is set to cater to the needs of the youth offering locally produced content tailored to the age group.”

Once the domain of adults, mobile phones have also become a necessity for school children.

In an earlier interview with Financial Tribune, independent telecoms expert David Whitefoot said that the main operators have rendered the MVNO market economically unfeasible.

He said due to main operators’ refusal to lower the wholesale price the MVNOs are struggling to attract investors and the fact remains that “they can make profit only via VAS.”